NewswireToday - /newswire/ -
Buenos Aires, Argentina, 2009/05/28 - The advent of the iPhone in the Latin American market has created quite a stir in the marketplace, greatly enhancing the levels of awareness of the value of smart phones.

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Although the iPhone's impact on the market was massive, competition was quick to react, unveiling a slew of models possessing features similar to the iPhone. The result was that the benefits of smart phones became increasingly evident, enabling deeper market penetration of the product.

New analysis from Frost & Sullivan (wireless.frost.com), Mobile Handsets in Latin America - Smart Phones in the Post iPhone Era, finds that smart phones in Latin America are poised for strong growth over the long term, since they enable the advanced data services that corporate and young users are demanding.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Catalina Rossini, Corporate Communications, at catalina.rossini[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

"Mobile office applications, rich multimedia uses, and social networking are among the main drivers," says Frost & Sullivan Industry Manager Ignacio Perrone. "This can be observed simply looking at any mobile operator's handsets offer; the range of available smart phones is really large, and is connected with the operator's strategy of focusing on data services that help to increase average revenue per user (ARPU)."

Latin America is currently at the same stage of growth as Europe was in 2004 and is expected to follow a similar evolutionary path. All countries in the region will display growth in the uptake of smart phones; however, the logic behind adoption will vary from country to country. In Argentina, Brazil, and Chile, evidence points to user preference for phones that provide better experience and more functions, whereas for users in Venezuela and Mexico, these handsets are looked upon as status symbols.

Though market prospects look encouraging, there are some impediments restraining progress. Issues such as high cost, billing issues for data services, and battery autonomy will have to be addressed to unlock the full potential of these advanced devices. The cost of a smart phone in Latin America is also a major challenge, but the impact of this factor will decrease in the long run as vendors benefit from larger economies of scale.

"Operators are working to solve these issues with subsidies and simpler billing schemes," explains Perrone. "Carriers need to continue expanding their 3G networks, promote useful applications, and address the main market barriers in order to be able to leverage smart phones and make them a true ARPU booster."

The iPhone is available in a dozen countries across the region due to sustained efforts of the main regional carriers and some minor participants. In order to capitalize on the opportunities unleashed by smart phones, it is imperative to understand the factors driving their growth as well as the interaction of these types of handsets with other categories such as feature phones and ad hoc phones.

Mobile Handsets in Latin America - Smart Phones in the Post iPhone Era is part of the Mobile and Wireless Communications Growth Partnership Service program, which also includes research in the following markets: mobile content, broadband and pay TV services. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

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